2007 PLACE Conference

September 16-20

St Louis, MO

GMA – SAFE Audit

Presented by:Greg ArmstrongTeam LeaderSchreiber Foods - Capri

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Don’t Just Approve a Supplier

Know Them!

How?

Who is GMA/FPAThe Grocery Manufacturers/Food Products Association (GMA/FPA) represents the world’s leading food, beverage and consumer products companies. The association promotes sound public policy, champions initiatives that increase productivity and growth and helps to protect the safety and security of the food supply through scientific excellence. The GMA/FPA board of directors is comprised of fifty-two chief executive officers from the Association’s member companies. The $2.1 trillion food, beverage and consumer packaged goods industry employs 14 million workers, and contributes over $1 trillion in added value to the nation’s economy.

AgendaSAFE BackgroundAudit Market PlaceSAFE’s Point of DifferenceSAFE’s Features & Benefits

SAFE Concept

Reduce the number of audits

Raise the food safety bar in the industry

SAFE Timeline

1998 20031999 2001 20062000 2002 20052004 Future

The concept of NFPA sponsoring a third party audit was proposed by Pillsbury

Welch Foods, Inc.Nestlé USA, Inc.Fresh Express Fresh Foods

Vlasic Foods InternationalThe Minute Maid Company (Now part of Pepsico)

Dole Packaged Foods Co.Tyson FoodsKraft Foods Inc.Del Monte Foods Co.

Silgan Containers Corp.International Food SolutionsWayne Farms LLC

SIG Combibloc Inc.Hudson Foods ConAgra Grocery Products Co.

Ralston Foods, Inc.Hormel Foods Corp.Campbell Soup Co.

The Procter & Gamble Company

Hershey Foods Corp.Borden Foods Corp.

The Pillsbury Company (Now part of General Mills)

H.J. Heinz Co. North America

Bestfoods Foodservice (Now Unilever)

Ocean Beauty Seafoods, Inc.

General MillsAllen Canning Co.

Novartis Consumer HealthFrito-Lay, North AmericaAgrilink Foods, Inc. (Now Birds Eye)

SAFE Timeline

NFPA commissions SAFE and the first guidance document is created

1998 20031999 2001 20062000 2002 20052004 Future

SAFE Timeline

Three Audits Performed

First Audit was performed in Mexico

1998 20031999 2001 20062000 2002 20052004 Future

SAFE Timeline

175 Audits Performed

1998 20031999 2001 20062000 2002 20052004 Future

SAFE Timeline

560 Audits

Moved beyond processors/US

1998 20031999 2001 20062000 2002 20052004 Future

Food Service Companies Now Accepting SAFE

Denny’sQuiznosOSI

ARAMARK CorpMcDonaldsJack In The Box

Bob EvansChick-Fil-ACara

PaneraDomino PizzaSysco

The Cheese Cake Factory

Ruby TuesdayStarbucks

Gordon Food ServiceAvendraInternational Dairy Queen

BMMICarlsonsCKE Restaurants

Retailers

Winn-DixieWhole Foods

H.E.B.Giant-Eagle(Considering)

Agroindustrias Cepia S.A.

TargetCostco

Safeway (Mandates)Gelson’s Market

PublixAhold USA

KrogerA&P

SAFE Timeline

710 Audits

Name changed to FPA

Initial Work on a Strategic Plan

1998 20031999 2001 20062000 2002 20052004 Future

SAFE Timeline

830 Audits

SAFE Adopts New

Business Model.

1998 20031999 2001 20062000 2002 20052004 Future

SAFE Timeline

Building Year

800 Audits

New SoftwareImplementation of Business PlanProcess Review / Shadow Audits Non-member GovernanceCustomer Web Interface

1998 20031999 2001 20062000 2002 20052004 2007

SAFE Timeline

Name changed to GMA-SAFE

Focus Year

Tweak program

Complete Merger

Audit the SQAFs

Implement Marketing Program

1250 Full Audits

315 Express Audits

1998 20031999 2001 20062000 2002 20052004 2007

Visiting One Plant

Providing One Report

One Auditor

That All Can Use

Meaning

ProcessorsLimited InterruptionControlled CostsBrand Name Protection

RetailersDue DiligenceDecides the StandardEasy to Manage

For the industry, this means vertical and horizontal integration

What does that mean?One Audit

Used everywhere around the world

That can be configured to a users preference

Allows for trending

Auditors having one audit to learn. Allows them time to perform a quality audit. Leading to better auditor competence

Governance of the SAFE Program

International ProcessorsRetailersFood ServicePrimary Packaging CompaniesAuditing Companies

SAFE Family of AuditsFullFull-DairyFull-AsepticFull-Spice

Mandate a minimum of 32 hours in a facility

Warehouse & DCPrimary PackagingNo mandatory time

GMA-ExpressMandate 12 hours in a facility

SAFE Point of Difference

How would you like to have all the information on your desktop about a supplier to be able to assess whether that supplier meets your standard?

SAFE’s Point of Difference

DeficiencyBait traps not 50 feet apart

Fully MeetsSince this facility is located withinthe city limits of Chicago, they onlyhave three bait stations that are located in the rear of their facility, behind a locked gated fence. Thesestations are inspected monthly by alicensed Pest Control Operator. To offset not placing poison traps along public streets this company has doubled efforts on sealing doors, docks and other entrances into the facility. They also have doubled the number of curiosity traps present around the interior ofthe facility. Curiosity traps are present on either side of all entry ways into the facility. Trend reportsshow zero captures over the last ten month. There was one fieldmouse captured in trap # 16 in April 2006. This trap is located in the boiler room which is removed from processing with no interior entry way into the facility.

Increase cost to your supplier

Requirements SAFE Requirements Outcome

Cost To Supplier

The site would need 44 total bait stationsPurchase 41 new (already have 3) @ $29/each = $1189Incremental inspection cost $3 per station per visit $123 per visit (typically 24 visits/ per year) =$2952Total increase cost to site = $4141 per year

CCP Failure With No Corrective Action

“The metal detection records (CCP) for 11/21/05 indicated that the metal detector reject device had failed, but corrective actions were not documented. The production records showed that the first pallet of product was finished at 9:17. The first metal detector check was conducted at 9:30. The metal detector check indicated that the reject device on the detector was stuck open and was not properly operating. The product that had been run prior to the metal detector being repaired had not been placed on hold, per procedure.”

SAFE’s Point of Difference

Scored Audit: With a CCP FailureCompany Still Received a 95%

SAFE: There would be no score to cloud the judgment. The Judgment would have been either Does Not Meet or

Critical Failure.(Witness Contamination or Regulatory Failure)

Scored Audit OutcomeArtificially high score with critical failure

SAFE Program Features

Narrative AuditUniversal FormatDifferent reports for different usersPaperless SystemExpedited AuditsCalling ProgramCustomer Web Interface

Masterfoods

Heinz

Safeway

Wrigley

Coca ColaGeneral Mills

Kraft

Unknown

Costco

Unilever

Welch’s

Supplier

One SAFE Audit

Satisfied the needs of all these companies

One Audit / Many Users

What is the SAFE Calling Program

Supplier list to SAFEProvides a letter for SAFE SAFE makes callsUsers: Kraft, General Mills, Welch’s, Masterfoods, Nestle, Heinz and WrigleyCost: $0

Customer Web InterfaceBuild your own supplier databaseSearch SAFE database for:

SuppliersProductsGeographyAudit Status

Scorecard templates & score supplier auditsIndustry AveragesFilter informationInformation sharing platform

SAFE’s Point of Difference

Requirements Audit

SAFE AuditFact Based &

Outcome Focused

Arbitrary Standards & Deficiency

Focused

Thank YouPRESENTED BY

Greg ArmstrongTeam LeaderSchreiber Foods - Capri

Please remember to turn in your evaluation sheet...